TinyBuild announced that its revenue for the first half of 2026 rose by 18%, reaching a total of $20 million for the six‑month period ending June 30, 2026. The company attributes this growth to a solid performance of its existing catalogue combined with the successful launch of several new titles. In the unaudited financial statements for the period, TinyBuild disclosed that a striking 85 percent of its gaming revenue originated from intellectual property that the company either owned directly (first‑party) or co‑owned through partnership agreements (second‑party). Within that mix, second‑party titles contributed an even larger share than first‑party games, underscoring the importance of collaborative development and publishing arrangements in the firm’s overall strategy.
The back‑catalogue continued to be a reliable engine of income, accounting for roughly 68 percent of total gaming revenue in the first half of the year. Evergreen titles such as *Hello Neighbor* and *Graveyard Keeper* demonstrated staying power, generating consistent cash flow long after their initial releases.
These long‑tail products helped smooth the revenue curve and provided a stable base that supported the rollout of newer offerings. Among the fresh releases that benefitted from the strong catalogue foundation were *Hozy*, *All Will Fall*, and *Sand: Raiders of Sophie*. Each of these games entered the market with a modest but growing fan base, and their performance contributed to the overall uplift in sales. Additionally, TinyBuild expanded its IP portfolio during the reporting period by launching the console version of *I Am Future*, adding downloadable content for *The King is Watching*, and bringing *Kill It With Fire 2* to the Nintendo Switch platform.
These moves not only diversified the company’s platform presence but also opened new revenue streams through additional sales and in‑game purchases. Despite the revenue increase, gross profit slipped by 5.7 percent, falling from $10.4 million to $9.8 million.
The decline was primarily driven by higher royalty payments tied to the success of the second‑party releases, which, while boosting top‑line revenue, also required the company to share a larger portion of earnings with its development partners. Adjusted EBITDA experienced a more pronounced contraction, dropping 23.2 percent from $4.2 million to $3.1 million. This reduction reflects elevated marketing expenditures aimed at promoting the new launches and expanding brand awareness for both existing and upcoming titles.
Staffing levels remained essentially unchanged throughout the half‑year, with the workforce hovering just under 200 employees. This stability suggests that TinyBuild is maintaining its operational capacity while carefully managing costs.
Looking forward, the publisher is optimistic about its pipeline. It has several higher‑budget projects in development, each with a budget exceeding $5 million, as well as a slate of promising IPs that are expected to enrich the company’s catalogue. The firm believes these upcoming games will further solidify its market position and drive growth beyond the current fiscal year. "TinyBuild is well‑positioned with a strong pipeline and a proven ability to attract, screen and market games, both from existing and brand‑new IP," said Alex Nichiporchik, CEO of TinyBuild.
He emphasized the company’s balanced investment approach, which aims to build a diversified portfolio of high‑potential own‑IP while leveraging a multimedia franchise model that extends the life of each property across multiple formats, thereby maximizing return on investment. Nichiporchik concluded with a forward‑looking statement: "Our medium‑term strategy is to expand our position as a leading global video‑games developer and publisher, focusing on IP ownership while creating long‑term scalable franchises across multiple media formats. 2026 so far has seen significant progress towards that ambition, and I would like to thank all of our staff for their amazing contribution and our shareholders for their support." In a related development, Griffin Gaming Partners, a venture‑capital firm specializing in interactive entertainment, acquired a 3.24 percent equity stake in TinyBuild during June. The investment was motivated by the company’s stable IP portfolio and its ability to create sustainable franchises with worldwide appeal, reinforcing confidence in TinyBuild’s long‑term growth trajectory.
Overall, while profit margins faced pressure from royalty and marketing costs, TinyBuild’s revenue growth, strong catalogue performance, and expanding pipeline suggest a resilient business model that continues to capitalize on both legacy titles and new, innovative experiences for gamers worldwide.